Skip to main content

tv   FBN AM  FOX Business  June 24, 2016 4:00am-6:01am EDT

4:00 am
and want to let our viewers know we have been covering breaking news overnight, historic referendum, a surprise to many that the uk has voted to leave the european union. it is a historic moment, markets reacting not in a good way. i will send it to lauren simonetti and nicole pedallides. lauren: thank you for taking us through the reaction and the breaking news, the historic vote as voters decide to bail out on the european union leaving the market in turmoil, british prime minister david cameron just moment ago says he will resign in october. >> let me congratulate all those who took part in the leave campaign for the spirited and passionate case they made. the will of the british people is and instructions it must be
4:01 am
delivered. nicole: we are waiting for a live statement from boris johnson outside his home in london. i am lauren simonetti. nicole: i am nicole pedallides. global markets in major selloff mode. let's check stock market futures, dow futures down 436 points well off of earlier lows overnight where we were down over 700 points. lauren: european markets open sharply lower, the ftse in london is down 5%, the dax in germany down 7%. a steep selloff in europe. >> it is noting the dax and the cac have been down 10%. looking at asia, the nikkei in particular in japan down 8%. shanghai composite in china 1.3%
4:02 am
losses and hong kong and hang saying for print. korea, cosby 3% of the downside. nicole: the market reaction, oil prices sinking 4% down $2.14 trading just under $48 a barrel. the worry is a slowdown in global growth and then the safe haven of gold rallying, gold prices up 4.5% to $1318 an ounce. lauren: the british pound sticking to its lowest level since 1985. also the selloff was the biggest ever on record. nicole: investors looking for safe places to park their money checking out the yields plunging 2.4 basis points, 1.5%.
4:03 am
>> it is for.02 in new york on june 24th and we welcome you to a special edition of "fbn a.m.," the latest breaking news on what to expect. joining us now the managing director of operations at devalue execution services and we are excited to have him with us, he will be joining us shortly to have some discussions, he has an trading action in the lowest points of the market. nicole: we want to get a look at reaction from around the world, front-page headlines, looking at britain's daily mirror, simply says we are out, daily record in scotland warning be afraid, be very afraid. wall street journal's front-page, uk vote to ripple across the globe, see you later. new york times writing british done world with vote to leave
4:04 am
eu. those other front pages you will be seeing this morning. nicole: breaking news, britain voting to leave the european union, shocking global markets and we are seeing them up off of the lows overnight, the british pound plummeting, david cameron saying he will resign by october. ashley webster covering it step-by-step throughout the evening live in london with the latest, 17.4 million brits voted to leave the eu. what is the mood like and what happens next? ashley: good question. shock and stun are two words that come ton mind, the last 24 hours we all got the sense the remain vote had done enough to win him of the polls suggested that but in the end, not over till it is over and sure enough
4:05 am
the leave campaign were victorious. david cameron clearly was out in front of this campaign, said that it would be much better for the uk to stay in the eu, safer, stronger, makes more sense, stronger together was a mantra but it wasn't to be. people wanted to see the uk win back its own sovereignty, power to make its own laws. david cameron coming out of 10 downing st. bitter morning for him, spoke to reporters outside and said there is no way he can continue to lead based on this vote and made an announcement about his future. >> no need for a precise timetable today but in my view we should aim to have a new prime minister in place by the start of the conservative party conference in october. ashley: i am all choked up about
4:06 am
it apparently. i think i swallowed a fly. what happens next? who will be the next leader of the conservative party? many people looking at boris johnson. we will see, he was the main leader of the leave campaign and he could be someone the conservatives could rally behind which it will be a while before the uk decouples from the eu. it is a two year process and when it doesn't have a prime minister in place and probably won't until october, it will be two plus years before the full impact of leaving the eu will be felt. nicole: we are waiting for a statement from boris johnson. what do we expect him to say. he might be the next prime minister. ashley: the local media here knocking on his door, you would not see that in the us,
4:07 am
hammering on his door live on tv, he is not answering, he will come out and congratulate david cameron on winning a great campaign, they were longtime friends in the conservative party, he won't talk about his future, all he will talk about is how happy he is that the people of this country listened to him and the leave campaign and why he thinks it is the best thing to do for this country. as for his political future if he takes any questions that will be the first question i guarantee but i don't think he will address it at least at this point. lauren: that is a live shot of boris johnson's home. we can see all the people outside who will be waiting for that, thank you very much. nicole: let's go to the head of trading at ets capital in london, stephen guilfoyle, managing director of floor operations, joe, hello. big night for you, good morning.
4:08 am
what does this mean for economies in europe that are already facing big problems? >> there will be a period of uncertainty in the economy, economic recovery we have got is certainly not good so the worst-case scenario that is fairly likely is that you see other countries wanting out, this could spread, you could quickly see a breakdown of the european project and even a breakdown of the euro zone. there is potential for big fallout from this. nicole: that brings uncertainty to these markets which is why we started out plummeting 800 points in the dow futures. we have come off of those lows but there is still the uncertainty, you mentioned other countries, denmark, norway, italy, any of those could choose to exit the european union.
4:09 am
we bring in stephen guilfoyle on the floor of the stock exchange, you have been watching the plunge overnight and it is monumental bringing so much uncertainty and fear, there is the opportunity for traders to get in at those lows and a buying opportunity as well. tell us what you have been seeing and thinking overnight. >> the uncertainty you mentioned is monumental because we have been talking about we would step in as buyers today. the stock 600 overnight, and 8% discount but the uncertainty of all the countries that might leave on their own and cameron resigned in october. mister johnson stepped in and applied article 50 right away. this might get the ball rolling. lauren: article l they invoke that to move forward with a two year process where the united
4:10 am
kingdom will separate from the european union. that will be invoked when we have new leadership and the new leaders will not do that right away but it is likely they will. that is another element of uncertainty. i want to explain article 50. >> i don't think the 8% discount, 14 times earnings what you had in europere as good as the 3% discount you will get off of the 17 times earnings you get on the s&p 500 here. if you have your shopping list you will look at those stocks you have always liked and you will buy them when they hit the price you have already set. if they don't reach that price you don't buy them. >> if you can talk about this monumental drop in sterling, hitting the lowest level in 31 years, were you expecting that? >> once in a lifetime move, to put it in context, black
4:11 am
wednesday, the exchange rate mechanism, sterling finished 4% weakening 10%. no one was expecting this and the market mispriced the potential and lost money on this. lauren: any orders executing? >> it was very busy but everything was pretty smooth. most were fully staffed in london. i have been there 24 hours. a lot of people have been to london. this is an unprecedented time and everyone is trying to get a grip and what is happening with the uk economy. lauren: it is reassuring we have come off of the lows of the evening where we saw the cac quarante down 10%, german dac down 10% and thoughts they might stop london trading. we saw that in action as well.
4:12 am
when you were seeing the overnight action it could be considered, you tell us, is this a knee-jerk reaction and what happens next week? >> you saw a knee-jerk reaction. i put it on the radio and i can make some money so these opportunities don't come around all the time. this is a once in 10, 15, 20 your opportunity and when you see it you have to grab it. lauren: donald trump's helicopter has just landed in scotland, he is there for the reopening of his golf course, he has been investing in this for two years, we have his arrival, we are waiting for him to speak, he is expected to speak from half-an-hour to 60 minutes, we will bring you more as we get it. i want to show you what is
4:13 am
happening. nicole: we are waiting for boris johnson, president obama is due to meet one cameron. we heard prime minister cameron a short time ago noted he would be resigning in 3 months. that was big news in addition to this breaking news that the uk and britain have chosen to leave, 52%. >> markets and bookies waiting for the remain camp, this was a shock reaction for markets around the world and we are seeing drastic decline, people going to the safe haven, the yen and gold. we are waiting for mister trump to come out of the helicopter and there we have it. waving to the crowd. and turn that -- nicole: the timeframe is
4:14 am
unbelievable. make america great again, make the united kingdom great again and that is why you saw so many people turn out and choose to leave the european union so there is our presumptive gop nominee and we will watch in the next hour. nicole: kathleen brooks, research director at see the index in london. the remain vote to win here, you are completely shocked this morning. >> they got it wrong and the leave camp -- lauren: we are having some issues that will continue to work on for you, taking a look at donald trump arrived in
4:15 am
scotland, his daughter and his son as he now arrives. >> a conference at 6 am eastern time. we haven't live for you as we work through this crazy night and crazy morning, donald trump was in favor of great britain exiting the european union. and control the borders. >> immigration immigration is a reason to vote this way to leave the european union, and those who said we would like david cameron to come and see what was done with the nation and how they have been hurt by the issue
4:16 am
and the other was trade and how -- >> there are so many american jobs 11 jobs in great britain and london, the financial capital. and put a lot of that in jeopardy. >> this is not happening overnight. this is a two year process and it will be interesting to see what countries may follow suit. >> we are awaiting a statement from boris johnson. you are looking live at a scene outside his home. any minute he is expected to come out. prime minister david cameron announced his resignation and we are waiting for that statement from boris johnson. your portfolio at home getting hammered this morning, dow futures down 2.5%.
4:17 am
it was much worse moment ago. nicole: traders get in, obviously there will be a lot of things to watch, volatility, we have seen it overnight, dow futures were down 800 points. people walking to safe havens of gold, treasury bonds, what do you anticipate as traders get ready to hear "the opening bell" at 9:30 a.m.. >> what no one is mentioning us today is the day of the russell rebalance, the heaviest day of the year. in britain and so on, and massive volatility. nicole: that is more the close than the open. >> caller: these traders, they need the systems to work perfectly.
4:18 am
the nyse has put the staff on, nobody is on vacation and everyone will have their guys -- lauren: circuit breakers is another point. >> caller: the dow dropped 316 points. >> i don't remember the last time we had those. smaller numbers. nicole: the worst drop for the dow jones industrial average in 2008. nicole: dramatic moves, dow futures down 438 points. where do you predict. >> i think we will moderate as the day goes on but because of his massive imbalances with so many socks it is impossible the
4:19 am
single stocks go, as a whole, we don't know until we see those. lauren: let's bring in kathleen brooks, research director at city brooks, thanks for coming back. commissioning private exit polls, with that data we didn't expect this decision from great britain to leave. >> it wasn't hedge fund. and they had it completely wrong. lauren: what are your expectations for today? what are the expectations for today? >> what we have seen is markets are stabilizing at a very low
4:20 am
level. -- it can come and go pretty quick. lauren: how low do you expect the pound to go? >> about 1:30. these negotiations -- and carry the economy. another thing. lauren: you are saying we have so much breaking news, we have a lot of speakers who will come out today including boris johnson, that is what you are seeing now, donald trump, we will hear from angela merkel, any one of them will move these
4:21 am
markets. >> absolutely. if angela merkel comes out with something, this could be a completely different story. >> to make it easier -- that could really impact -- >> the eu will try to somehow woo the united kingdom to make some sort of consolation, not a complete separate new thing. we need them. >> absolutely. one of the biggest partners, casino power, the whole of europe. lauren: using -- losing the uk is like california and florida, two great states being blocked
4:22 am
off of our economy. so many american companies do business in the eu and specifically in the uk, the multinationals trade down in the stock exchange and elsewhere, what is their reaction? >> you see larger discounts. the boozemaker trading in lockstep with the pound. the movement has been exaggerating because the retailer policy. as a traitor, something i'm watching closely, what i think is an inefficiency. lou: cheers to that. britain's total contribution to the eu set at $24 billion, germany, the eu's largest member would have to provide the most extra cash. adam shapiro live in berlin with the latest and before you speak
4:23 am
i want to let viewers know we have angela merkel press conference we are waiting for. adam: good morning. she is going to issue a statement, in new york time, going to address the outcome of the vote. in germany what was at stake with the vote was economic growth, largest economy in europe, the eu, what was predicted 8% growth in 2017 is 1/2% of growth in gdp. politicians in germany have come out, a man named manfred weber, he is a conservative and an ally of angela merkel, there should be no special treatment, leave the eu within two years and
4:24 am
issued a statement saying this is a british vote, not a european vote. cooperation in the continent, we want better and smarter europe, convince people to bring europe back to them. and leaving the eu politicians, this is a quote, we want to be in charge of our own country, borders, immigration policy. the contagion members of the eu feared might take place if the uk voted to leave now appears to be appearing, politicians in holland saying they need to have a vote and in france, this is a victory for people who celebrate the president of france, françois hollande will come ahead of the eu summit tuesday. he will meet with angela merkel, the two largest economies in the
4:25 am
eu, to go forward. nicole: thank you, especially the eu summit tuesday. lauren: the german 10 year bond, a record low further, in negative territory, something everyone has been watching on wall street and shows more of a safe haven and more money flowing into that. let's bring in a market analyst in london. the bookies guest the wrong way. we saw all the safe havens being sold off. your actions for today to compensate. >> that is why you are seeing a significant market, 10:00 last night. and betting on a remaining outcome, 90% probability, 90%
4:26 am
probability the uk remains in europe and ultimately when early results started to come out that was completely turned on its head and the value of the pound and the ftse 100 and the german dax and going into safe havens as you quite rightly said has gone negative again, bond yields edging higher. a political contagion could result as a result of this vote. i don't think we can underestimate the effect this vote could have on the spanish elections this week and ultimately the presidential elections in france this year. the german elections next year as well. lou: spain, germany, france, the leader of the independence party talking about the eu dying,
4:27 am
denmark, the netherlands, sweden, austria, seeing sentiment to leave. the trade block, the eu. >> that is right. i don't think it is about the eu. if you look ahead of the european commission it is part of it. the searing austerity you see in greece, spain, youth unemployment, chickens coming home to roost. earlier this week there can be no more renegotiation. this is as far as we go on renegotiating. if this is mishandled by politicians on either side in the uk in the european union, consequences going forward for the future of the european
4:28 am
union. nicole: looking at trading action underway, off the flows of the morning, at home we are likely to see all 30 dow components with goldman sachs the worst of the bunch, jpmorgan down 5%, 70 tao points, your thoughts on trading action today and how it should be played where do we end up by the end of the day? >> that is a huge call. a significant rebound in terms of where the ftse is now is back to where it was ten days ago, 6000. the context of the move the past 10 days, the rally we have seen since the beginning of this week but the reason banks are being
4:29 am
hit particularly hard is the federal reserve is not ready for interest rates anytime soon and if anything you could potentially see an easing of monetary policy over the next 6 to 9 months come particularly if this spreads to the banking sector, europe is fragile enough as it is. lauren: thank you for your perspective, we are awaiting any moment boris johnson, former mayor of london, shot outside the home in london, 9:30 in the morning. winning the vote here. he led the leave campaign and they are leaving where they have been 43 years. nicole: great britain voting to leave the european union. we have the latest developments
4:30 am
plus check out stock market futures, we are down 800 points overnight. we have come off of the lows significantly even overnight in the last few moments. we saw london and the london footsie, now we are looking at us futures. you are watching "fbn a.m.," your first look at morning markets and breaking news. >> the economic consequences of vote out our huge. that is why i am voting to stay. >> to see what they actually do. >> the european union. >> so many refugees. it is another reason everyone wants to vote to leave.
4:31 am
..
4:32 am
4:33 am
nicole: britain decides to leave the european union. we are contemplating whether they are speaking. the leader of the exit campaign, we show you the percentages, 52% to 38% in the european union.
4:34 am
looking at futures, over 800, dow futures down 452. >> a knee-jerk reaction. at the stock exchange, russell rebalancing, a lot of volume in this decision, to contend with and the world right now is reacting to the uk voting to leave. headlines around the globe in the newspaper, the daily record in scotland, be afraid, be very afraid. the wall street journal, uk vote rippling across the globe, see you later and the new york times, us stuns world with the to leave eu. david cameron, after great britain continued to leave,
4:35 am
global markets diving, the british pound diving, we want to know what this means for the eu. ashley: what does it mean? uncle merkel -- angela merkel in france and germany, very difficult day for them, the rest of the 27 members, the uk has left they want to do their own thing. still stronger together. from germany's point of view, the biggest economy, the second-largest with 18% in the gdp of the eu overall. disillusioned, and layers of
4:36 am
bureaucracy. the majority would like to get out of the eu. and that was the biggest fear of the major economies of the eu. the french and the germans now make a big pitch to say relax, everything fine, we are stronger together but i would not be surprised if we see more efforts in the european union to go to a vote to see if countries want to stay together. nicole: we saw donald trump arriving in scotland where he was wearing his make america great again hat and the concept is to make the united kingdom great again and that is one of the many reasons we saw voters vote to leave the european union, immigration, trade. how were the bookies and markets so wrong as they leans toward the remain decision? what was the clincher?
4:37 am
ashley: that is a very good question. i always follow the money, the smartest thing to do in the bookies generallyet it right but they are laughing their heads off today, they taken a lot of money, people us a lot of money on this, 464,000 that the uk would stay in the eu. i can only imagine what somebody is thinking. what made the difference? there was a stronger pushback from what we would call the establishment, david cameron, jeremy corban of the labor party, the bank of england, the business leaders all coming out saying we must stay in the eu and for whatever reason it did not resonate and people were more concerned about immigration and the economy. you could say the stay camp didn't make a strong enough point. >> you have 5 million british and europeans that are british citizens working in the european
4:38 am
union country or a member of the european union working and living in great britain. what happens to those 5 million people? >> nothing, it will take two years to get this sorted out, they are grandfathered in but at some point the uk will say we are controlling our borders, you can come in the immigration policy. it is a point system where you have a degree, and another four points, you reach a certain level of points you are eligible to come into the country to be put in place. >> we will see you in a bit. nicole: how is washington reacting to the uk vote? peter barnes live in washington
4:39 am
with more. >> the white house is watching the brexit vote and the president has been briefed, the president will speak to david cameron sometime today, the president himself was in london in april, gave a speech urging voters to stay in the european union weighing on this before. major visits to tech companies speaking get a couple tech events later this afternoon so we will see if we get comments from him directly. and we are checking with treasury, the federal reserve, janet yellen warned about brexit say get could cause significant repercussions on the global economy and could hurt the us
4:40 am
economy, us trade and exports, not sure what it will mean for monetary policy itself, further rate increases for a lot longer as some analysts have expected. >> a lot of people say janet yellen made the right move for not raising rates in june. >> are we going to see an interest rate hike? we go straight to gary smith, how are you doing? >> i am well, thank you. >> your reaction to britain no longer being part of the european union, just 27 nations in the union. >> i approach it from two perspectives. one is like some other commentators have said i think it is a vote for freedom, a vote for liberty. people in the united kingdom have said enough with large
4:41 am
institutions, we want to run our own ship. from that perspective it is wonderful. it is independence day if you will. from a financial perspective i think it is going to be a little rocky. we have seen the futures this morning reflecting big down open, normally when futures are down that much it doesn't recover. >> we are going to go to sky news, tony blair, the former prime minister. >> you can see from what happened to the currency markets, the financial markets, further indications of this in days ahead. it is important to stabilize the situation because part of the difficulty with this is it was not a decision whether to join the european union, it was a decision to leave. 40 years we have had trading and commercial relationships growing up with the rest of europe upon which large numbers of british
4:42 am
jobs, this will require immensely careful handling and you have got to do that with a sense of unity across the spectrum. >> what does it mean for the party you led to those historic victories? happier times, what this result shows his millions of labor voters, some don't follow the leadership anymore. >> let me be frank. the leadership was lukewarm and it's support to remain. i don't think we organize or mobilize supporters to understand the vote against the government and the establishment. and enormous consequences. those in the labor area feel strongly about the issues of
4:43 am
immigration and government policy, and local industry and jobs, these are the big challenges countries face. unfortunately the right answer is not to leave the largest commercial market and biggest political union in the world and i don't think. >> tracing back personal responsibility for that thinking and those pressures to build up, it was a free movement to people in the european union and all those people in eastern europe when those nations joined in 2004. you waived the uk's transitional arrangements the could have stopped those people from poland and other countries from coming immediately to the united kingdom. is that a decision you regret? >> it is a decade since i
4:44 am
stopped being prime minister and applied transitional arrangements, basic principle of free movement of people in the european union, one of the things that allows european market, there will be debate within europe, not just following the british referendum but what is happening in the rest of europe but i want to make one thing clear. the enlargement of europe to take in former soviet countries in eastern europe, for very good reasons, good political, strategic, economic reasons and those countries coming into the european union have anchored them in european political space and that made a huge difference to those countries and our trade with those countries. i understand the pressure of people from eastern europe living and working in this country, i believe on the whole
4:45 am
those people pay more in taxes than they take in benefits and they have contributed a lot to our country as well and one of the things we have to do in this time is to send a signal to those people some of whom occupy issues of importance. >> that is more or less what jeremy corban seems to be saying but he was on the losing side and this is the ultimate form of democracy, some day. you hold a referendum or get a verdict to abide by it. mister cameron fell on his sword. jeremy corban was on the same side. should he consider his position as well? >> a much bigger question for the labour party. we have got to consider where we are going and what we are trying
4:46 am
to do because one thing i think is happening that you can see happening around the world. look at the united states of america and europe, the center-right lost political traction. we have to accept that. taking control right now, we have got to think carefully, bigger question than the labour party, we have got to work out where we are going because all these problems are coming in globalization, changing the world, technology, migration, the world coming together and driven by people, not driven by governments but the answers to the challenge of globalization do not lie in shutting ourselves off from the world. what we will learn in days, weeks and months ahead is you can ride the anger, but you don't actually produce the answers to the challenges people
4:47 am
face. it is a big issue in relation to the politics of the western world. >> used to be a populist movement as you demonstrated with your landslide victory. doesn't seem to be that anymore and we heard nigel for roche saying he thinks that they can replace -- there is a danger if it doesn't get its act together. >> there are risks but that is why labor should get its act together. do we want nigel to be the person who determines the future of this country? the labour party has to rediscover its passion, passion for the purpose of providing answers to the problems people face and the answers to the problems people face today is not to turn on migrants or divide the country but through education, infrastructure,
4:48 am
understanding of the way the modern world works in the regions of the country are properly invested and one of the reasons i heard from jeremy corban earlier today was this notion of letting down the people in the labor areas, we invested massively in those areas introducing things like the minimum wage and signed up for the european central chapter. the way to bring these people back is to go and provide them with answers to the problems we face which are generating these communities, educating people, using the power of technology and infrastructure, about the future. not about taking our country back to a time that doesn't exist in the world anymore.
4:49 am
this is the tragedy of it. what we will find i think in the days and weeks ahead which is why it is so important to keep our heads in the moment, stabilize the country and think our way through it, we will find that what people thought was going to be an answer to these problems is not really an answer at all. >> as a scott, what are your thoughts north of the border, scott's voting overwhelmingly to stay within the european union? would you have sympathy that we don't want to leave the european union, that could happen in a couple years, they go to nicola sturgeon and say we have another independence referendum quickly. >> this is one of the things people like us warned about. the debate changes. i want scotland to remain with the uk, it is a new reality. you will get increased pressure for another referendum in scotland and another set of
4:50 am
circumstances than the previous referendum was held under. he will have pressure in northern ireland. we never got an answer to how to keep a common travel area from north to south and in the european union, one of the questions it was important for these people to argue today and to be responsive, we were told there would be serious economic consequences. you can see from the markets already today there are large consequences and we were told we were scaremongering and when we said there would be threat to the united kingdom. you can see from the reactions already those threats are real. i think and hope when they reflect on what they brought our country to today when they reflect on it, people like boris
4:51 am
johnson, intelligent people, intelligent people, when they reflect today, i hope they reflect on how we can come together and have a sensible debate, when the reality of the choice we made is going to sink into the public consciousness in a big way. >> thank you very much for sharing your thoughts with us. tony blair, former prime minister. nicole: you were listening to sky news interviewing tony blair, prime minister from 1997-2007. he seemed shaken visibly by the decision to leave. he was obviously in the remain camp. we have gary smith, president of catena group, stephen guilfoyle still onset.
4:52 am
you say tony blair and the remain camp doesn't get the argument of the leave camp. >> i spoke to a lot of british people as many as i can find, one guy who wanted to remain coming in the exit camp, on the sovereign border, something we all mentioned was a common threat, if you mentioned president obama spoke in april, for the main part, the border is a big piece and the economic argument, the one guy who wanted to remain. nicole: he was asked why do you think everybody was so angry, he said exactly that. angry over people coming into their country they don't even know who they are and that is what donald trump said. we will wait to hear from him and bring in gary b smith joining us here this morning to break this down once again, off of lows of the morning, what do
4:53 am
you anticipate for today? >> it will be a volatile day. i would expect some sharp up moves after the open reaction, it will settle in and we will drop down. nicole: except for gold. >> if you bought right now and you were very quick and at 9:30 eastern time you can expect a bump in stock to 5% or so. after that initial bounce we drift lower. we could be a horrible day. what normally happens, when the market gap is down there is a reaction move and it starts to sink lower and lower like it did after 9/11, dropped down, might drop a couple days, a couple weeks. this is a buying opportunity. nicole: a couple weeks, the market might drop in the us? >> when you see a gap opening, this is what we will open down
4:54 am
5%, not going to recover that in a day, maybe a couple days. could take a little while until people figure out the end of the world is not here. as tony blair says the united kingdom is not under attack and i think we will start to move up. nicole: james hughes, good morning. your thoughts on what is going on where you are right now? >> a pretty monumental day in the uk, we have seen things we did not expect, a lot of us thought we would never see and throughout the night we have seen different ramifications, different people talking about different parts. we are seeing volatility within these markets and i agree with your guest previously. we have seen real negativity, the pound is up heavily against the us dollar, the ftse is off heavily as well but there is
4:55 am
some buying in the bottom of those. people are seeing the downside, a bit of a trace from those absolute lows. would not be surprised to see that continue through the day. not to say the negativity on the downside is over. i expect downside through the next couple weeks, downside in the ftse as well in banking stocks, so much uncertainty at the moment, we know the markets hate it but that much uncertainty, it is hard to gauge any side -- the state upside. >> to your point of uncertainty the vicks which is a gauge, and 50% at one point overnight so we are seeing that as well. thank you for joining us, stick around please. coming up, historic vote in the united kingdom rocks the global
4:56 am
market, traders getting ready for a big plunge, new york at 9:30 eastern time, complete coverage and commentary and all you need to know, take a look at us stock market futures, dow futures down 471, have been down 800 overnight as the news broke that britain, the uk chooses to leave from the european union and we see markets reacting as we would expect from a leave vote, a safe haven, treasury yields drop, the pound drops, the vicks, the fear index plunges. that is what we are seeing right now. you are watching "fbn a.m.," first look at morning markets and breaking news. >> we have a big effect with this election, not what happened in britain but the rest of europe, the rest of the eu, talk about leaving the eu, now they are.
4:57 am
4:58 am
4:59 am
nicole: breakingews, historic vote in britain as voters decide to bail out of the european union leaving global markets in turmoil. david cameron speaking moment ago saying he will resign in october. >> let me congratulate all those who took part in the leave campaign for the spirited and passionate case they made. the will of the british people
5:00 am
is an instruction that must be delivered. nicole: i am nicole pedallides. lauren: i am lauren simonetti. global markets, major selloff, checking us stock market futures ahead of "the opening bell". dow futures down 490 points, they were down 804 earlier. in the us and around the world. >> we had a wild night, watching moment to moment, european markets to the downside, major averages down 5%, the dax down 7%, that was down 10%, the cac quarante down 9% and down even further. nicole: stocks got slammed this friday, the nikkei in japan halted briefly, the nikkei plunging just about 8%. check out china, the shanghai composite was down 11/3%. nicole: a leave vote, oil pulls
5:01 am
back $2, just below 48, $47.98 a barrel and gold source $52 at $13.15 a troy ounce. vel in the british pound 35 years since 1985, investors flocking to safety. you can see that with the yen. it did break below 99. >> the treasury soaring as investors look for safe places to put their money, 1.5% and the german bunt at record levels. >> it is friday, historic day in great britain, june 24th. welcome to "fbn a.m.," your first look at the latest breaking news and what to expect for the day ahead. lauren: the daily mirror simply says we are out, daily record in scotland's warning be afraid, be very afraid, we are out, way out. the wall street journal front page says ripple across the globe.
5:02 am
the sun newspaper in britain reads see you later. the new york times writing british sons world with vote to leave eu. it has boiled the global markets today. nicole: david cameron says he will resign after great britain decided to leave the european union. global stock market diving, british pound plummeting. ashley webster live in london. ashley: it has been breathtaking, the events of the last 12 hours. we were shocked to learn the leave vote had beaten the remain vote, david cameron out earlier, congratulating opposition, the leave side and saying he will be out of office by the conservative conference in october so we get a new prime minister so interesting that mark carney, the governor of the
5:03 am
bank of england coming out trying to take what is potentially a political crisis and try to head off a financial crisis going before the cameras today, this financial system is resilience, strong, and make no mistake, when the financial crisis first hit here in 2007 when we remember northern rock bank going under. he said these banks are well capitalized, we stress tested them under the votes, worst-case scenario they have plenty of cash on hand and he said the bank of england is ready to kick in another 250 million pounds if needed. that was a real attempt to say to the markets it is okay, we will do what it takes to make sure these markets are fine. as the day goes on maybe that will have some resonance. we will see a lot more volatility as the shock is still
5:04 am
fresh. over the next couple weeks we will hear from the eu as well. angela merkel in germany, françois hollande in france, all the major leaders, their reaction to what the uk has done and all of this will be to try to calm the nerves not only of those in the financial system but those people in the eu who say okay, what is going on, britain is out, does that mean the european union is under threat? some believe it could be. mark carney, governor of the bank of england doing everything he could to say it is okay, we planned d for this and we will fine. . >> this news really stunned everybody overall. britain bows out, believe that is 52% to 48% and this is the deck i wanted to make, the bookies were betting on the remain vote so more people, the little guys were betting to
5:05 am
leave. they were wrong. now they point to boris johnson, the new leader. what do you anticipate for that? he is the leader of the exit campaign, former mayor of london. bookies are saying he is likely the new leader. ashley: after this event who do you believe? polls said it would be close. most of the bookmaker's will bet on absolutely anything and 80% chance remains that they will win. what do they know? they were reporting where the money was going. they got to keep almost all the money bets on the outcome of this vote. as for boris johnson he will be in the front running, he may be the favorite to take over from david cameron but that will have to be sorted out among the conservative party themselves. whether boris is the person they want fronting the party, perhaps
5:06 am
a little less colorful. nicole: we were expecting boris johnson to say something after david cameron resigned as prime minister. it seems he bolted out of there without saying anything. can you confirm that? do you know anything? >> i would not be surprised. he is going to make some sort of statement today and first thing he will do is congratulate david cameron on running a good campaign, he will also say how happy he is the united kingdom decided to vote the way he did. he worked tirelessly to get this result. he was literally all over the country yesterday, he was in a fishmarket kissing fish. such as boris johnson's style. we have to see. certainly he put his political future on the line and he could indeed take over from david cameron.
5:07 am
nicole: joining us for this hour, stephen guilfoyle, managing director of floor operations that devalue executive services and the market analyst in london. we thank you both for joining us. let's start with you. you noted that when we talked about the bookies that actually, tell us about the breakdown. more people were betting on remain but you looked further into the data. >> most of the money was on remain. 75% of the money was on remain, close to 70% of the individual bets were on exit which means regular people, the common people, the people who are disaffected voting against the status quo, they were going for exit. nicole: we are seeing a huge move to the downside in the markets the world over. when does it end? does it end? how do we go? what do we do?
5:08 am
>> when it ends we have to see over the next week or so. we are seeing the bulk of the move before 4:00 or 5:00 in the uk, we will continue to see volatility. there is uncertainty hanging over the market, could continue to weigh on some. i had to use a cliché but markets really hate volatility. how long it lasts depends how well policymakers and politicians do to calm investors and suggest it won't all the bad. the problem is prior to the actual vote we were told this would be an absolute catastrophe, now the same people have to tell us it is all going to be fine. to see how investors react to these calming words. >> you make a great point because there is a lot of uncertainty, the vicks, the fear index, everybody has nervous jitters. i want to ask, you get "the opening bell" at 9:30 eastern
5:09 am
time, and 800 for dow futures, now we are down 489. your thoughts on the open and where we are at lunch time. >> we have been preparing for this day because we had a feeling there could be a selloff. i put some cash on the table to be ready for this. as we look at this uncertainty we see in europe several countries that lined up to get their own exit votes. we see the prime minister of the uk re-signing but not until october which you want to get the ball rolling as far as getting this two year process going. better discount if you are bargaining under is the s&p 500, not the stock 600. you are getting a 3% discount here as opposed to 6% or 8% discount. lauren: let's go back to craig
5:10 am
and ask your opinion on the action we have been seeing. aleve vote is running to the safe haven of treasury bond, goals, utilities, the defensive plays. what is the trading action likely to be? calm investor fears. >> we saw a run for safety prior to the actual vote, people too overconfident, they are tracking those too closely and in the run up to the vote, markets too high and a lot of support for gold, the japanese yen, the currency space is an issue in itself. japanese officials in the bank of japan repeatedly warned about strengthening the currency and this morning the eu, people start buying the yen, weakening the currency and causing further problems in the markets. over the next week or two we will continue to see this risk
5:11 am
aversion. whether that leads to significant selloffs i'm not convinced by that. they haven't bottomed out. we will see more stability at least with intraday volatility as more comments are made and we find out the next two years will look like. lauren: does great britain leaving the european union signal to you a dismantling and an end of europe as we have known it since world war ii? >> it increases the probabity. this is going to be the sticking point. the uk repeatedly said we can get a good deal from the eu. the eu has a decision to make, do they care more about the european union? is it more about keeping 27 members the remain happy and preventing referendums which were housed in places like the
5:12 am
netherlands, in france we see fighting against the establishment, we get a good deal now it will be a top -- >> we are seeing so many countries saying exactly that, concerned about immigration, trade, this is a historic day and we will see if other countries follow suit. thank you very much. >> and 23rd independence day in the uk. britain have a contribution to the eu, germany, largest member in the trading block, we have to provide extra cash. adam schapiro live in berlin. speaking of trading going on in germany what is the volume like?
5:13 am
>> we just got off the phone with the co-ceo, arthur fisher, he said we have several months of uncertainty, nobody knows or understands what will happen. volume on his exchange is trading three or four times what you would expect but everything is performing normally. we have circuit breakers in the united states, they have something similar here and there is no need for the european security and market authority to intervene or for the individual authorities in each country to intervene, equities, stocks are trading at a normal rate, the dax, german stock index is down 6%. angela merkel is going to issue a statement, not a press conference, she will not take questions, she will issue her statement in roughly one hour how to go forward.
5:14 am
the president of france is coming to berlin monday. he is going to meet with angela merkel because they will be the largest economies in the eu. the uk is the second-largest economy but they are leaving. the head of france and angela merkel will meet monday. that is ahead of the eu summit in brussels in which all the leaders of the eu nations will meet and figure out how they go forward. we had the chance to speak to one person, from hamburg, i asked what do you think? his english was not vy good. bad for the english, good for the germans because we like to make a profit. here is what experts are saying, and growth is expected to be 1.8% and the uk is leaving, expect growth to be 1/2%. that young man from hamburg is optimistic about the future of germany, not so much the uk.
5:15 am
nicole: thank you for that information. lauren: donald trump is expected to make a speech in scotland at 6 am eastern time. german chancellor angela merkel will have a press conference, we are hearing a statement we should crify as adam schapiro told us, something we are waiting for. angela merkel, boris johnson, the former london mayor who campaign for britain to exit the european union, they are looking to him to see some guidance and words from him, something we will focus on as well. let look at global market action overnight, the european union markets going to turmoil. and we saw that the dax and cac quarante, repaired those losses, the dax down 3%, the cac in
5:16 am
france is down 8% and the london ftse did open, would have that, down 5%. nicole: levels might change after boris johnson's speech. commodities, oil trading down $47.87 a barrel, gold up $50, 4% move to the upside, safe haven play, $1312 an ounce. lauren: we have to focus on the pound. 1.38 right now and that is a big selloff. and the lowest levels in 31 years. the euro, uk pound, the greenback, and the japanese yen. nicole: the yield on the treasury moving 1.35%.
5:17 am
>> to break down the numbers we have been seeing and traders have to digest this, markets open at 9:30 a.m. eastern time. not everybody is a traitor. a lot of people will wake up and be nervous, they will be worried about their 401(k)s and i are as. how are markets expected to handle this volume and volatility and something to calm investor fears? >> a little nervous. lauren: are you going to wait it out? >> it is a buying opportunity. i am not telling them to go on time, the futures are behaving right now since i have been onset. when i got here i was thinking and open on the s&p 500, i am not as confident in that.
5:18 am
definitely a concern and volume is a big deal. and rebalance. >> we talk about the russell index. >> what they do is russell with their indices at this time of year, track those indices, and the indices and a lot of funds that follow and today the closing bell throughout the day you will see trading much heavier than usual and the exchange will have the staff on hand, the heaviest day of the year. nicole: we were talking about circuit breakers being triggered, that is how we imagine the top would be. it doesn't seem like it. why did we see it come up? >> it was an overreaction.
5:19 am
we got out of bed. 11, at 11:30, we had a big thing on our hands and a little bit of sleep, i said i got to try, that is more important than sleep. lauren: no doubt. the markets have come up off of the lows of the evening but we are seeing safety plays this morning, dow jones industrial average futures down 470, new 2.6% and goldman sachs down 7%, that could shave off 70 doubt points. we are looking lower, s&p 500 futures down 71. great britain rocks the world voting to leave the european union. global markets in turmoil and we will have the latest developments. we continue to watch markets
5:20 am
around the globe selling off as everybody flocks to the safety of gold and treasury yields. you are watching "fbn a.m.," your first look at morning markets and breaking news. >> it is fair to say at some point down the line there might be uk/us trade agreement but it won't happen anytime soon because our focus is negotiating with a big block, the european union to get a trade agreement and the uk is going to be in the back of the queue. v
5:21 am
5:22 am
5:23 am
nickel may great britain decides
5:24 am
to leave the european union, 51.9% of the voters wanted to leave, 48.1% wanted to remain. world financial markets plunging, dow jones futures down to and a half%. the bridge pound facing its biggest 1-day fall in history. david cameron says he will resign by october saying the country needs fresh leadership. donald trump expected to make a speech in scotland at 6 am eastern time. on merkel -- angela merkel expected to make a statement later this morning. the former mayor of london boris johnson campaign for britain to exit the european union. he too expected to deliver a statement very soon moving parts for you, each and every statement moving markets and affecting your portfolio. lauren: let's get you caught up on global action, let's start with european stocks, asian
5:25 am
stocks across the board. ftse down 5%, the dax in germany down 6%. this had been down 10% so we are off of lows of the overnight trade. the cac quarante in france, 7.5%. turning to us stock market futures, down 800 points, there are jitters on wall street, the s&p futures down 69, all 30 dow components looking to the downside. goldman sachs, jpmorgan, the worst of the bunch. lauren: concern about europe affecting the oil market, trading down 4% to 48 even. the safe haven play is gold. it is up $52 trading at $13.15 a troy ounce. nicole: the only currency hire against the us dollar is the japanese yen. you are seeing a selloff for the canadian dollar all lower against the us dollar, the uk pound, 1.38.
5:26 am
that moves to the lowest level in 31 years. lauren: in addition to yen and gold the treasury market, the yield on the 10 year, 1.35%. nicole: jane foley live from london, currencies are plunging, following britain's vote to leave the european union. it surprised everybody. what should investors keep in mind today? >> the huge amount of uncertainty opened up for the uk and europe. we had the prime minister in the uk announcing he is stepping down, resigning as prime minister. a new present prime minister will come in in october. a catalog of uncertainty about who is going to lead britain through what is likely to be a messy region. we have to look at europe. what does this mean for europe? if you look at opinion polls, a
5:27 am
lot of disharmony in europe, people directing that towards the eu. a portion of france and italy, spain, with europe and smaller countries too. the market is not just concerned about uk politics but what does it mean for europe? that is a much bigger issue. lauren: currency affects the world market. the day after the pound in britain hit the highest level of the year it plunged 10%, lowest level since 1985. how low do you see that going? >> just over 132. we recovered some ground. we had reassurance in the bank of england of $250 billion worth of sterling made available. they do have credit lines to assure investors, sterling is a little higher but all these
5:28 am
uncertainties we may not see further downside sterling, potentially the next few -- lauren: the us dollar a potential here? >> that is a long way away. we could see below potentially, all of this uncertainty pushes investors into safe haven currencies, japanese yen is a safe haven. the bank is intervening another safe haven in the us dollar, people hold assets, the us dollar, not necessarily something the federal reserve wants to see. lauren: we thank you. george soros said we could see a big selloff if they chose to leave, 15% to go to 115. we will continue to watch. nicole: let's see how washington dc is reacting, peter barnes joining us in washington with the latest. good morning. >> reporter: we could hear from
5:29 am
president obama on the brexit vote when he speaks later today. london and april the president urged british voters to stay to help the british economy trade. white house official says the president has been briefed on the brexit vote and is being updated. the president is expected to talk to prime minister david cameron by phone sometime today. checking with the fed and treasury to see if they have any comments on this, janet yellen warned about brexit twice, said it could have a significant economic repercussion on the global economy and that could hurt the us economy. not sure yet what the brexit will mean for monetary policy weather will force the fed to hold on rate increases for a lot longer and standing facilities in place with the bank of england, the ecb and other central banks pumping billions of dollars into currency markets in the event of high demand for dollars as the reserve currency
5:30 am
and safe haven and periods of global market turmoil. nicole: keeping us up-to-date, we will be watching the key speakers today, boris johnson and at 6 am eastern time. coming up a historic vote in great britain as they decide to leave the european union. what is the future of great britain and its prime minister david cameron, future of the global market, he has chosen to resign. presumptive republican gop nominee donald trump expected to hold a news conference at the top of the hour from scotland and boris johnson, former london mayor who campaign for britain to exit the european union delivering a statement, we bring that to you live. the lows of the morning, we are down 448 points on dow futures, the s&p and nasdaq futures down 3%. you are watching "fbn a.m.," your first look at morning markets and breaking news.
5:31 am
>> bring down this project and leads us to europe, sovereign nation states trading together, cooperated together, brussels and all of this. check ennot fun! but, you've got hum. that's like driving with this guy. all you do is press this, and in plain english, "coolant", you'll know what's wrong. if you do need a mechanic, just press this. "thank you for calling hum." and if you really need help, help can find you, automatically, 24/7. because you put this, in here. hum by verizon. the technology designed to make your car smarter, safer and more connected. put some smarts in your car.
5:32 am
medto fight many has develdifferent bacteria.otics but some antibiotics are being overused and the bacteria are becoming resistant to our best medicines. remember, don't ask your doctor for antibiotics
5:33 am
to treat a bad cold caused by a virus. antibiotics won't cure a virus and improper use allows the bacteria to becomeeeee strongerrrr. and always remember, finish your treatment of pills even if you start to feel better
5:34 am
lauren: britain decides to leave the european union, 51% of voters wanted to leave. world markets plunging, dow jones futures down 447 points, down 800. the bridge pound suffering its biggest 1-day fall, david cameron said he would resign by october saying the country needs fresh leadership. donald trump expected to make a speech in scotland at 6 am
5:35 am
eastern time. boris johnson, former londonon mayor who campaigned for britain to exit the european union delivering a statement soon. nicole: david cameron said he will resign, we see global stock market diving, the british pound plummeting. the vote in london was to remain. are they celebrating in the streets of london or are they scared by what was in the market? >> those who want to leave are celebrating but no sign of that here. it is all very quiet. people went about their morning commute trying to digest everything that happened. it won't happen overnight. a divorce like this will take two or 21/2 years to finalize
5:36 am
before the uk uncoupled itself from the eu. the shock is still there. they try to digest everything, continuing to follow reaction from the eu it self, terrible news for brussels. they are certainly upset by this. other eu countries will want to forge new deals with the uk but don't want to show the uk too many favors and the political leaders will try to hold a tight line because they don't want to give the impression it is easy to leave and you can negotiate your own trade deals. that is at play. france and germany will try to integrate more, to make the european union more and integrated space. now that the uk is gone the uk holding back the thought process. the uk is gone, we may see more integration into the eu. interesting comment from the far right national front leader who tweeted out victory for freedom
5:37 am
after she heard the results in the uk. she said it is time for a referendum in france and elsewhere in the eu. then we got this from gabriel, germany's vice chancellor who spoke out and simply said a bad day for europe. a bad decision for britain, germany and europe. everyone obviously taking it in. those who want to keep the european union together dismayed by what the uk decided to do. those that want to leave got what they wanted and we are waiting to hear from boris johnson and whether he could be cameron leaves office. lauren: big comments from major economies in europe, france, germany, great britain and as adam shapiro told is angela merkel and françois hollande will speak monday in berlin trying to navigate through this unwind of great britain, thank
5:38 am
you. nicole: tony blair seemed sad and shaken by the decision. donald trump arriving and saying people in britain were angry over immigration and other things. joining us to look at these markets closely, managing director of floor operations and mike ingram, market analyst at bgc partners in london. tell us about the sentiment off of earlier lows but still some jitters. >> yes, understandable. interesting to see markets, ftse 100, sterling continue to trade up through david cameron's resignation. many people thought the brexit vote the writing was on the wall for him and chancellor george osborne who lost his heir apparent. a positive thing we haven't seen any official response from brussels.
5:39 am
one of the major unknowns is what kind of settlement the uk can secure outside the european union. as your report said, there is an instinct to not want to make things too easy for the uk, encouraging other forces. having said that the project has failed in the uk and that will only cause the spanish, parties that support loose monetary policy in the spanish election, it is fraught with uncertainty. lauren: i want to bring in stephen guilfoyle, the central bank says it has intervened in the currency market to limit the franks rise after this vote. will we see more intervention from other central banks? >> i can't believe they haven't already. when it got to 103 we expected
5:40 am
$107.96. this is a prime example why it is important not to join the em you. switzerland can defend themselves. the uk can defend themselves. poland can defend themselves. it is a less messy divorce because they control their own money supply and interest rates. they are not stuccoing money because of a bailout or something where they can't get out of a bad deal. nicole: now that we saw britain choose to leave the european union, other countries could follow suit. it could take two years once they actually invoke article l which is how they begin the exit process which may not happen for three months or longer. your thoughts on the other countries and investments for the rest of this year going forward? we clearly see a selloff today but we have uncertainty for the
5:41 am
rest of the year? >> it is a very rocky road. all within a broader context of most markets in europe which peaked in may of last year. never fully recovered from that surprise in august, the global economy in a good position. i agree with previous statements in terms of automatic stabilizers, the uk having placed into the euro zone, they are dangerously exposed. that explains why stocks are down sharply. potentially what has happened in this uk vote is a euro killer, the euro, ultimately undermines the european union as we know it. nicole: can you describe the scene where you are, were the phones ringing off the hook last night, during the day? have you gotten home yet? >> many of us have been here through the night. usually a good idea to get some
5:42 am
sleep. people don't tend to make decisions when they are all strung out but some of the moves we saw overnight, sterling went into meltdown in the morning uk time. announced a big move, people don't know how to react to it. it was too late to do a histori
5:43 am
britain as economic consequences of a vote out our huge. that is why i am voting to stay. >> i am voting to remain. >> so many refugees. it is enough of a reason. x÷x÷
5:44 am
5:45 am
5:46 am
nicole: britain decides to leave the european union in a historic referendum. 59% wanted to leave. 38.1% wanted to stay. world financial markets plunging, dow futures down 483 points.
5:47 am
the british pound suffering its biggest 1-day drop in history. david cameron says he will resign by october saying the country needs new leadership. the uk voted to leave the european union. donald trump expected to make a speech and the goblins at 6 am eastern time. in england boris johnson, former london mayor who campaign for great britain to exit the european union is expected to deliver a statement at 6 am eastern time. britain's total contribution to the eu has been set at $21.4 billion this year. germany, the eu's largest member, would have to provide the most extra cash. adam shapiro live in berlin with the latest. lou: we would hear from the chancellor of germany, angela merkel, in 45 minutes, she will issue a statement on the uk's
5:48 am
decision to leave the eu. she is not taking questions but several people have questions and one is a woman from scotland who lives in germany for the last we 4 years, elsa glynn joins me. are you shocked your countrymen in the uk voted to leave? >> i am very shocked. i had expected those in favor of remaining would win. >> reporter: what happens to you, your livelihood living in germany now that there is so much uncertainty? >> to be honest with you i do not know what will happen to me. i am married to a german man and i believe my position here, than those who have a connection here, i don't know. >> reporter: one of the issues raised by this is people in scotland might request another referendum for independence should the uk vote to leave and britain has voted to leave.
5:49 am
now what happens? >> nicolas surgeon, the head of the leading party of scotland and scottish nationalist party have always said she would call for a second referendum on brexit. whether that will happen i don't know. it will be interesting to see if that is the case of scotland leaves the union. >> reporter: the you think your fellow citizens from the uk might face animosity or reaction from citizens of the eu when they travel abroad? >> i don't think that at all. citizens of the eu are open to all nations within the eu or outside the eu. i don't think there will be any animosity. there will be questions. lou: since we are hearing from one political leader in holland
5:50 am
in the netherlands that they want to have a vote, do you think other countries will follow the uk's lead? >> i believe there are movements within other countries, i read this morning that in france, what she called -- there is movement in that direction. lou: when you woke up this morning and learned the vote was to leave how you personally reacted? >> with shock and sadness. we were up late last night until the polling stations in great britain closed and we watched the commentary on german television and i woke up early this morning at 6:00 to discover it was likely britain would
5:51 am
leave. adam: million say this is a momentous and victorious day. >> i am sad because i believe it is the wrong direction for great britain. i believe economically and culturally britain is better off in the european union. adam: stay right there. on merkel -- angela merkel will issue a statement in roughly 45 minutes and the president of france, françois hollande is coming to berlin monday. that is in advance of the summit tuesday in brussels, eu leaders to figure out how they go forward. nicole: adam shapiro, thank you. we have gary b smith, and rob morgan, chief investment officer in philadelphia, thanks for joining us. i will go to you first.
5:52 am
we are looking at this freefall in the global marketplace this morning. how much of a drop do you expect? we are indicating maybe a 450 point selloff. >> the situation will improve as we go forward on the day. dow futures were down as much as 800 and they come back dramatically. some rationale will take place here. i mentioned on the show a week ago i had some ideas on insulating a portfolio against brexit, sagging pound, rising dollar and not too late for us investors to do this. avoid international equities because countries continue to rumble through the summer about leaving the eu and a more defensive sector, utility, telecom, materials. nicole: today is the end of the month. meridian equity partners, end of the month, end of the quarter,
5:53 am
the first half of the year, starting with a 494 point loss for the dow futures, he predicts we can end off of lows this morning down 300. your thoughts? >> that is reasonable. normally, this is all emotional trades if you will, probably open way down. i expect a spike up. what i think independent of what i said earlier we will drift down at least a few days. i think there are some buying opportunities. nicole: what about you? >> we are going to get our chances. it is sloppier, s&p trading around 2030. i want them to see them around 2032. if you add in fair value you get 20/50 for cash. we need to see a constructive hold at the 20/50 level. and there will be an active
5:54 am
close which almost anything could happen. nicole: we have a graphic of the biggest losses. we know the exchange of across the globe for big market moves today, circuit breakers in place where if we were to see a drop of 1060 points on the dow jones industrial average we would see a pause for 15 minutes and if it gets worse from there, you can close the market by the end of the day so we are anticipating a big move this morning, a selloff but we have volume on the close as well. >> i don't think anybody at this point, you guys chime in, do you expect to see any circuit breakers triggered today? >> i don't think so. building on a little more of an intermediate to long-term case i talked about the short term, this will be a bad news is good news thing for the fed.
5:55 am
the fed won't do anything over the summer given their propensity never to raise rates before an election, we won't see the fed raise rates until december or next year. longer-term, england is not going to slip into the atlantic ocean. this isn't going to happen for two years when prime minister cameron leaves office. i think people will take a little bit of a longer view. nicole: you agree britain stays afloat. what does this tell you? are they standing down through the rest of the year through the election? >> i think they are even if we didn't have brexit, the economy has been week enough for the fed to do nothing. the only point i want to add about the uk not falling into the ocean this presents b one intriguing area to look at is the british pound, etf, 31
5:56 am
year low, are people going to stop buying biscuits? that might be the area to look at. nicole: we have talked about donald trump time and time again, we saw him coming out of the helicopter with a make american great again and in the moment where britain saying make britain great again, is this a donald trump moment he was hoping for talking about immigration, trade, something that helps donald trump in his campaign? >> i don't know if it helps donald trump but he may help britain decide the way they decided ing the argument was about sovereign border control, you saw by virtue of individual betting that the little guy was feeling disaffected and voted against the status quo, those are his constituents. nicole: donald trump, we are looking at him making his way through the crowd in scotland, he invested a lot of money in that, they will reopen it today. he called the vote in great
5:57 am
britain today, quote, a great thing. lauren: people were angry about immigration, people coming into the country not knowing who they are. we see investing in the safe haven, gold, utilities, you expect that to continue today and how do you calm the fears of investors who look at their 401(k)s and iras and are worried? >> those are reaction trades. i wouldn't touch those. i would go the other way. we talk about the british pound, i would look at oil which looked like it was going to plunge. now might be the time to look back and a company like exxon if you will. long-term to call investor fears
5:58 am
it is typical advice fortunately or unfortunately, long-term game. these are buying opportunities. calm her mind will prevail. if you look at your portfolio even a year from now it will be higher than it is this morning. lauren: we see what a british exit from the european union is doing to global equities. what does a donald trump presidency do to global equities? >> i don't think whether we have donald trump or hillary clinton, in a lot of ways in the long run i don't think it is going to matter that much. markets don't necessarily -- if you look historically markets have done better with democratic presidents but only by a slight amount. nicole: what does the market look like under a trump presidency? >> i don't think it looks worse than it could under hillary clinton's presidency. can i quickly address gold? >> quickly. >> now that the fed can't move it is not going as low as the others. lauren: we thank rob morgan, chief investment officer in
5:59 am
philadelphia and gary smith and on our set with us this morning for couple hours stephen guilfoyle, we thank all 3 of you. david cameron meeting the queen after the uk voted to leave the eu. donald trump expected to make a speech in scotland very soon, slated to meet with political leaders while he is in scotland and england boris johnson the former london mayor who campaign for britain to exit the european union expected to deliver a statement this morning. lauren: let's get you caught up on global market action, stocks are down in a big way but off of the lows from a couple hours ago. selling going on in france, down 7.7%, the dax in germany 6.5, the ftse in london down 5. lauren: we are seeing selling across all the sectors. nicole: dow futures down 494, 2.7%, had been down 800 points, s&p futures down 75. fix, the fear trade going on in gold up 57 $57 and 13 $.20 an
6:00 am
ounce, oil giving back to dollars to $47.83. nicole: thank you for watching "fbn a.m.," special coverage all day and we turn it over to "mornings with maria" and say good morning to you. maria: i am maria bartiroma, friday, june 24th at 6 am eastern. breaking news, busy morning, chaos in global markets, the united kingdom votes to leave the european union. prime minister david cameron has resigned. he will step down by october. >> the british people have voted to leave the european union and there will must be respected. i will do everything i can as prime minister to steady the ship over the coming weeks and months but i do not think it will be right for me to try to be the captain that steers our country to its next destination. maria: the historic vote sending global markets into a state of shock. us future stumbling after a surpriea

108 Views

info Stream Only

Uploaded by TV Archive on